The Newberry herald and news. (Newberry, S.C.) 1884-1903, 1887-03-24
CHEAP MONEY FOR FARMERS.
The Way the Owners Of more Land
than they know what to do with
can make Fortunes for Them
selves and Boom the State.
Columbia Correspondence Ncrs aud CoWie;

Columbia Correspondence Nc1cS aud Couritr
A representative Of the Ne,rS md
Courier had talk to day with gen
tleman, whose modesty induces him
to withhold his name from the public,
but vino may be relied on as one Of
the most progressive and patriotic
Of Our citizens-one who takes deep
interest in the advancement Of our
agricultural and manufacturing in
tcrcsts, and whose acquaintance with
such interests is large. This gentle
man said:
The great need Of the South is
capital. If the farmers could get
cheap money for few years the
cry Of hard times would be heard
no more in the land. Why can they
not borrow money at ow.rates from
capitalists of the North and Europe ?
The answer is easy. The money
lenders doubt the security. Not that
real estate is not the lest collateral,
but because there is q sentiment pre-
vaiiing against the foreign money
lenders that makes foreclosure Of
mortgage unpleasant and some times
difficult. Consequently when money
is loaned to our people such rates Of
interest are demanded as will cover
the contingency Of possible losses.
I Lave often talked with Northern
men who were contemplating invest
ments in Southern enterprises, and
in nearly every case they wanted 8
part Of the stock taken by residents
and influence in the enterprise. Now
if our people can devise some means
for making the security good and
combine with this advantage local in
fuence l haven't the slightest doubt
but that all tie money they need can
be obtained at low rates of interest.
As q beginning in this direction
l would suggest the organization Of
what might be called Land In
provement Company. There are
thousands Of men in the State who
are land poor They have extensive
acres that are simply a burden on
their hands. Now my plan is to
utilize these lands by making them
The basis Of a large loan which can
be used, not only for the develop.
ment Of the lands, but for the inaug-
uration Of other great enterprises.
This result can be effected in various
ways, hut, I think, The most practical
plan would be TO organize company
with power to purchase land, build
railroads, canals, factories, &C. Let
every man in the State who owns un-
productive land sell it to this CON-
pany, and receive in payment there
for stock Of the company at its par
value. AS soon as the company
shall have acquired sufficient land in
this way, say $5O0,0OO worth, the
company can issue, say, $4,000 Of
debcnture bonds secured by mort
gage of these lands. Some reliable
National or State bank could be con-
stitu.ed the trustee for the bond
holders and the mortgage deposited
with such trustees. Loans then can
be raised by tie sale Of the bonds
and the lender las then no more
trouble to collect his interest than to
detach his coupon and present it at
any banking house in this country.
The money thus raised at low rate
Of interest can be loaned to stock
holders Of tAe company at the rate
it is borrowed or invested in various
enterprises as the board Of directors
cf the company may decide.
You will observe that under this
plan the lender avoids the trouble
and expense of recording mortgages,
foreclosing the same, and gets rid Of
many other smaller yexations, while
receiving better security for his
money, and has associated with him
men who are in every way identified
with the people OF the State. There
will be no disputes about the titles
to lands because the land has already
been purchased and paid for BY the
company, and the company as a cor
poration, has given its mortgage.
All homestead claims would also be
gotten rid Of.
The company would own lands Of
every character, timber lands, min
cral lands, pastures and agricultural
lands. A part of the money raised
On the bonds could be used in de-
yeioping these lands and in settling
them with thrifty colonies. \ part
could be csed also in various other
profitable schemes. For instance, the
Columbia Canal could be quickly de.
veloped, a line Of steamers could be